| How often do you see the word "money" paired up | | | | consultation with a values-based financial planner. In this |
| with the word "values"? For a growing number of | | | | example, he will be faced with a large tax liability. |
| entrepreneurs, it doesn't happen often enough. | | | | Traditionally, a client may be provided with several |
| You've all heard it before. Money doesn't buy | | | | options based primarily on numbers analysis. By |
| happiness - it's what we do with it that counts. | | | | contrast, the values based planner had the client |
| Regardless of our opinion, most of us continue to | | | | create a vision of starting a non-profit organization |
| focus our energy and time on making as much money | | | | embodying two of his passionate causes of education |
| as possible. The age-old equation is that investing | | | | and technology. The client is clear about what he |
| money over time produces even more money and, | | | | values. As a result, there is a shorter decision process. |
| presumably, more happiness and well-being. | | | | Rather than wait for a traditional planner to crunch |
| The freedom money can bring allows you to spend | | | | different scenarios, for side-by-side comparisons to |
| more time with your family and do what you really | | | | calculate, consider and think over-in this example, one |
| love. But why look to happiness, well-being and | | | | possible outcome may be establishing a donor advised |
| prosperity as merely the endpoint in your equation? Do | | | | fund (DAF). The client gets the best of both worlds: |
| we need to wait twenty years for investments to | | | | saving on taxes and choosing specific non-profits that |
| mature before we cash in on our happiness? | | | | match his passionate cause and what he stands for. |
| A new movement called values-based financial | | | | Scenario B is an installation artist who discovers her |
| planning is quickly building steam... and this is precisely | | | | passion for sustainable environments and supporting |
| where money harmonizes with vision and quality of life. | | | | local businesses. She also wants her money to grow |
| Traditional financial planners begin their consultation by | | | | in an emergency fund that can match inflation. One |
| gathering information on your financial goals. How to | | | | potential solution may be community investment notes, |
| retire by a certain age. How much to save for your | | | | where investors earn a fixed three percent interest |
| kid's college. How to manage risk through insurance. If | | | | while channeling 100 percent of the investment toward |
| you state a goal, they ask you your time frame. They | | | | non-profits in local affordable housing and |
| discuss Morningstar reports, tax implications and | | | | micro-investing. She gives back to the community while |
| investment track records. These are all important | | | | earning interest at the same time. Not only that, |
| issues, but goals are distinctly different from values. | | | | community investment notes also have an option to |
| Where goals are financially and materially oriented, | | | | use 100 percent socially responsible investments. |
| values are timeless, universal and reflect what you | | | | The last scenario involves a boomer retiree who owns |
| stand for. Values-based planners don't bring up the | | | | several rental properties. She's worried that her kids |
| subject of money at the first meeting. Rather than dive | | | | won't appreciate their inheritance. Rather than talk |
| into statements, performance and assets, they ask | | | | about estate planning, reducing tax liabilities, and getting |
| questions like, "What's the most important thing in your | | | | involved in a myriad of acronymed financial |
| life?" "What's the best thing that happened to you in | | | | instruments, a values based planner might discuss how |
| the last 48 hours?" followed by "What do you | | | | to convey her values versus valuables to her children. |
| appreciate you about that?" Your answers help to | | | | She might decide to go through a program called The |
| form a blueprint for your life, a basis from which your | | | | Heritage Process that is facilitated by a values-based |
| investments will be made. | | | | planner also aligned with The Heritage Institute ( This |
| Step two is about creating your living vision a financial | | | | process will help her uncover and share her core |
| plan then follows. This is where the real fun begins. | | | | values with her children while crafting a vision |
| The different ways that you, as a business owner, | | | | document, which will be a guiding star for generations |
| entrepreneur and investor can align your money with | | | | to come. |
| your values, is an expression of your core beliefs and | | | | The process of working with a values based financial |
| who you are as a person. This aspect of your planning | | | | planner may take a little longer but may definitely be |
| can be hugely enriching. Check out these scenarios. | | | | worth the effort. Planning from the inside out can |
| Let's say a tech professional has an in-depth | | | | make all the difference in the world. |